The Mortgage Mistake Too Many Buyers Make
Here’s a hard truth: your credit score plays a major role in what kind of mortgage you quality for, and ultimately, what you’ll pay every single month. Do you ever look back and wish you had waited before applying for a mortgage? We have clients come to us frustrated with the higher monthly payments they have to deal with. What’s the reason? They didn’t take the time to improve their credit before applying.
So what happens when you don’t wait? Higher interest rates, higher monthly payments, and frustration that could’ve been avoided with a little prep work and waiting.
Improving your score isn’t just an idea, it’s a wise financial move. Even small improvements can lead to better loan terms and save you thousands over the life of your mortgage.
How to Help Your Credit
- Reduce your credit card balances
- The less you owe, the better your score looks
- 30% Credit Utilization
- Under 30% is good, but under 10% is even better
- Keep Accounts Open
- Keep long-standing accounts open to help show your credit history
- Pay on Time
- Even one late payment will have a long-term impact on your score
Position Over Perfection
Being proactive about your credit isn’t about perfection, it’s about putting yourself in the best possible position when it’s time to buy. Think of this as part of your strategy to not only get approved, but to secure the best possible deal. We understand it can feel frustrating to have to wait longer, but helping your score can make the difference in thousands of dollars.
Need Help Prepping for Homeownership?
Let’s talk if you want to start prepping for your first home, next home, or investment property!
